Try Local Banks & Credit Unions first, don't skip any.

Most big banks will follow FHA guidelines, but some of the local banks / credit unions have more aggressive products and can lend with higher LTV or DTI limits once you have some experience.

If you can do 4-5% down payment and have a decent credit score, most local lenders (mortgage brokers, credit unions, local banks) will be able to offer you a way better (overall) deal than an FHA loan.

I would talk to some lenders and see if you can pre qualify, especially military credit unions. 

Local banks, and credit unions, etc.

That helps.I am also assuming that many of these regional/small banks/credit-unions may not have extensive online presence so i have to pick up the phone and do it the old fashioned way (but not 'too' old fashioned way of going there in person...as that would be very hard for me to accomplish for every potential opportunity i find).Originally posted by @Michael Le:You'll likely have better luck with a local-to-property bank as they better understand the local area and market.

I've tried close to 20 others, even our small town local banks but they no longer would consider pre '76 manufactured homes whereas Becky and First Union were willing.Good luck

I was wondering if anyone knows a bank or credit union that offers a line of credit product on investment properties.  

Hi Kris - $40k is too small for most lenders, I would suggest a local credit union or savings bank. 

Its nicer than Union City IMO, bit too far but has some form of exclusive appeal, tucked away.